Probikes

Ltd, a bicycle retailer who operates in Limpopo, ordered 3 000 new BMX Pro

Frames from Japan for their exhibition to be held at the JHB Bicycle Exhibition.

The BMX Pro Frames were received from their supplier on 1 February 2024. The invoice

price of the BMX Pro Frames was R1 800 each (before a trade discount of 8%) and

is payable on 31 March 2024, the year-end of Probikes Ltd.

A goods in transit insurance was taken

out for a non-refundable R5 500 deposit for delivery of the items to Probikes Ltd’s

warehouse. On route to Limpopo, an attempt was made to hijack the delivery

truck and 45 of the BMW Pro Frames were irreparably damaged, on 1 February

2024. A Claim was submitted to the insurance company.

The following cash costs regarding the

purchase were:

Additional information:

• Inventory is valued at the lower of cost

  and net realisable value on a first-in-first-out basis.

• Inventory shipping terms is free on

  board (products of Probikes Ltd when shipped)

 Required:

What will the cost of inventory be after delivery per unit at

year-end 31 March 2024 (Round up to the nearest rand)?